Preface: From the lighting capital of Guzhen to the vibrant city of Shenzhen, goods flow from component suppliers to brand manufacturers, and finally to distributors and retail stores... Behind this flow of goods are increasingly sophisticated 'deferred payment' tools, which frequently appear due to credit sales and advance payments. In the future, they may well turn into bad checks, rotting in the hands of the last receiver, becoming the straw that breaks the camel's back.

In 2013, Xie Yingxiong, the boss of Xiongji, a large lighting enterprise in Guzhen with an output value exceeding 100 million yuan, fled due to unpaid wages and debts. The capital chain broke, leaving nearly 25 million yuan owed to numerous suppliers, and employee wages were in arrears.

The same year, Leixing Optoelectronics, located in Xixiang, Bao'an, Shenzhen, went bankrupt simply because of a cash flow problem of only 1 million yuan. According to a former employee, the company was crushed by about 1 million yuan in uncollectible receivables, leading to a capital chain rupture. Meanwhile, upstream suppliers kept pressing for payment, and eventually, the company couldn't advance its own funds and couldn't hold on.

Time passes, but it doesn't wash away old traces. Today, in different industries, we see such stories repeating every day. Business is about real money, but to develop, many enterprises have to choose credit sales and advance payments to retain customers, finally facing the awkward situation of easy credit but difficult collection.

Distributors' Predicament of Advance Payments Is Hard to Solve

(Advancing payments for customers is like walking a tightrope; a small gust of wind makes you tremble, and one misstep leads to a crushing fall. But the whole industry is doing it; if you don't, you can't make sales, and that's also a dead end.)

Behind a large enterprise, there are often countless distributors who advance payments for it. It's said that distributors are 'caught in the middle' and face difficulties in operation, which is not without reason. To actively expand the market and win quality customers, distributors often adopt credit sales, granting customers credit periods. Big data shows that over 90% of distributors use credit sales and advance payments, but once the money is advanced, collection becomes a major problem. According to research reports, up to 82% of enterprises engaged in credit sales encounter difficulties in collecting payments or are affected by delayed payments.

We interviewed a small business owner, who said: "Nowadays, when enterprises transact with customers, it's usually on 30-day, 60-day, 90-day, or even 120-day terms. When the term expires, it's embarrassing to press for payment. When we do ask, customers delay with various excuses. The question is whether to continue cooperation or terminate it. Terminating makes collection even harder; continuing leaves us uneasy as the amount grows. If we don't cooperate, we might resort to legal channels, but that takes a long time, plus time, energy, and attorney fees."

This is the major problem distributors face today: they dare not ask for payment, and a misstep could cost them both relationships and money. The business model of credit sales and advance payments has existed since ancient times, but the pressure of advancing funds has never found a good solution.

Black Technology Emerges: Collect Debts Without Speaking

Since it's hard to speak up, is there a way to make customers pay voluntarily? As the year-end approaches, I'd like to introduce this advanced smart collection tool on the market to business owners anxious about accounts receivable: the Enterprise Red Packet Bill. As the name suggests, it's about sending red packets to invite customers to pay, making them willing to transfer funds.

The R&D team of Shanghai Wenli Information Technology Co., Ltd., which developed the Enterprise Red Packet Bill, discovered that "many distributors or salespeople, to encourage customers to pay, would personally send a red packet to the boss as a polite reminder," and this method improves collection efficiency. So they combined supply chain finance with this unique red packet bill collection method to develop this management tool for debt collection. It matches payment data with ERP business documents, completing the entire automated process from reconciliation, collection, to verification, reducing human errors, greatly improving supply chain efficiency, and helping enterprises achieve 'early collection.'

As a product of the Internet era, this Enterprise Red Packet Bill can be said to be a tech-savvy collection method developed based on insight into human nature. People tend to feel goodwill and enthusiasm toward those who give them benefits. The Enterprise Red Packet Bill leverages this, psychologically winning over customers first, making collection a breeze. (There are many such examples in our lives, like when contacts don't reply on WeChat, but a red packet often brings them out; the logic behind it is the same.)

Convenient Operation, Full of Tech Intelligence

Simply scan the QR code, fill in registration information, and whether you're an upstream supplier, downstream distributor, or a small business owner, you can associate your enterprise and use the red packet bill.

The specific usage process of the red packet bill is very user-friendly. If it can be done in five steps, it won't waste time. See for yourself:

Step 1: The payee creates a bill. Create a separate bill based on the customer's accounts receivable, with the amount clearly stated.

Step 2: The payee sets red packet rules. The red packet bill offers multiple discount plans, allowing you to tailor your approach and make collection more efficient.

Step 3: Send it to the customer via WeChat.

Step 4: The payer pays by any method and immediately receives the red packet. Suitable for both online and offline.

Step 5: The payee confirms the payment and can withdraw the red packet anytime, enjoying the fun of receiving it.

Multiple Red Packet Rules for Various Scenarios

At the same time, Wenli has extended the red packet rules, developing various rules applicable to different scenarios. Each red packet rule and amount is freely set by the payee.

1. Instant Discount Red Packet: A direct reduction in the current payment. A red packet tells the customer, 'Pay 90,000 instead of 100,000 now, why not settle the account quickly?'

2. Coupon Red Packet: After the customer pays, give a cash rebate that can be used for the next payment. This strengthens the cooperative relationship; settle the account and get a red packet—who wouldn't want such a partner?

3. WeChat Promotion Red Packet: After the customer pays, send a WeChat red packet, which can be a regular cash red packet or a fission red packet. The earlier you settle, the bigger the red packet. What are you waiting for?

4. Gift Red Packet: After the customer pays, give a corresponding product as a gift. Settle the account and get a sports lottery ticket; after forwarding so many lucky charms, maybe you'll win 5 million this time. Why wait to settle?

At this point, you might understand that the red packet bill benefits both parties in the credit relationship, so buyers are willing to pay proactively.

'Cash is King': Early Collection, Early Development

(In any balance sheet, monetary funds are always listed first.)

As we all know, cash flow is the foundation of a company's survival and development. Even in a sluggish economy, it's not an exaggeration to say 'cash is king.' Cash flow is more important than profit. Every year, many enterprises see growth in performance but still collapse due to capital chain issues. As a business, the time gap between paying your suppliers and employees and collecting money from customers is a significant issue. If this gap isn't managed well, or if bad debts or dead accounts occur, the losses could be incalculable.

The significance of the Enterprise system for modern distributors is that for the payee, it optimizes cash flow, accelerates capital turnover, improves supply chain efficiency, and maintains old customer relationships with precise marketing; for the buyer, it undoubtedly reduces procurement costs and brings additional benefits.

The Enterprise Red Packet Bill actively solves the problems of distributors finding it hard to ask for payment, customers being slow to pay, and cash flow difficulties. It reduces overdue receivables, accelerates sales collection, and changes the past closed loop of upstream and downstream enterprises and financial institutions, providing distributors with integrated supply chain finance and credit solutions. So, as the year-end approaches, if other collection methods don't work, why not try the Enterprise cash red packet? Use this magical tool to help your business collect payments quickly and early, optimize cash flow, reduce operational risks, and have a pleasant new year.

Empowering Distributors' Cash Flow: The Company Behind It Has a Strong Background

(Photo: Wenli CEO Zhong Shengjiu at a meeting)

Shanghai Wenli Information Technology Co., Ltd. has been officially operating since 2011 and is a leading supply chain fintech service provider in the industry. In the consumer goods sector, it serves clients such as P&G, Pepsi, and Mengniu. From providing data services to brand owners to offering supply chain financial services to distributors, and launching the 'Red Packet Bill' to empower distributor finance, Wenli serves customers with professionalism. In the future, Wenli will further propose better solutions to optimize distributors' capital efficiency. Let's look forward to it.

Editor's Note: It is said that this month, new users who register for Enterprise can participate in the 'Registration Gift' activity, receiving a 100 yuan account bonus plus an additional WeChat red packet. Follow the Enterprise official account or click 'Read Original' for event details.